- As we are still far away from the FED’s target interest rate, bonds have plenty more room to fall.
- Inflation could force the FED to hike rates and push bonds down very quickly.
- This is probably the end of the 35-year bond bull market that has beaten the S&P 500 by five times.
I haven’t written about bonds since back in July when I said that bonds were extremely risky (article available here).
Unfortunately for bond holders, my call was prescient to the point of perfection because yields went up and consequently bonds prices went down. More →